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PlusNet Cessation Charge

I am flabberghasted, gobsmacked, speechless.

I wrote to plusnet in September asking for my fathers )91 years old) intnernet subscription to be closed, in view taht his Dementia has now advanced to astate where he no longer understands or is able to make use of the internt.

PlusNet called my parents home to tell them taht they would close the account within the 10 day cancellation period plus a

CESSATION FEE of £25.00

He was with Plusnet for many many years and then be told he has to buy himself out of a contract, although there is only a 10 day notice period for cancellation?

We where also told, that if he had died or migrated to another provider, he would not have to pay a Cessation Fee.

The question is it legal that one has to buy oneself out of a contract? I thought that finished with slavery and !!!!! contracts only.

Perhaps this is something Martin Lewis should check, the audacity that a company can demand such a charge on terms that only require 10 day notice on long term subscritions.:mad:
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Comments

  • Bosie
    Bosie Posts: 1,218 Forumite
    Part of the Furniture Combo Breaker
    edited 29 September 2011 at 8:56PM
    Moonsurfer wrote: »
    I am flabberghasted, gobsmacked, speechless.

    I wrote to plusnet in September asking for my fathers )91 years old) intnernet subscription to be closed, in view taht his Dementia has now advanced to astate where he no longer understands or is able to make use of the internt.

    PlusNet called my parents home to tell them taht they would close the account within the 10 day cancellation period plus a

    CESSATION FEE of £25.00

    He was with Plusnet for many many years and then be told he has to buy himself out of a contract, although there is only a 10 day notice period for cancellation?

    We where also told, that if he had died or migrated to another provider, he would not have to pay a Cessation Fee.

    The question is it legal that one has to buy oneself out of a contract? I thought that finished with slavery and !!!!! contracts only.

    Perhaps this is something Martin Lewis should check, the audacity that a company can demand such a charge on terms that only require 10 day notice on long term subscritions.:mad:[/QUOT
    I know I was told that when I rang up for a MAC key, if you wanted to migrate to Virgin there was a £25 fee and to cancel a £25 charge even though
    Inot in contract:eek: Never known that before and they belong to BT.
  • Tony_
    Tony_ Posts: 65 Forumite
    Part of the Furniture 10 Posts Photogenic Debt-free and Proud!
    Plusnet get charged £25 by BT wholesale to cease broadband on a line, however if you transfer your internet to another provider, plusnet don't get charged by BTw.

    Why should Plusnet pay that charge out of their own pocket?

    If it was a cancellation due to a death, then if they don't charge it, I expect they absorb the cost as a goodwill gesture due to the circumstances.

    You also only have to pay for the router (if you had one off them) and the activiation charge (if you deffered payment) if you were with them less than 12 months.
    Only two things are infinite, the universe and human stupidity, and I'm not sure about the former. - Albert Einstein
  • Tony_ wrote: »
    Plusnet get charged £25 by BT wholesale to cease broadband on a line, however if you transfer your internet to another provider, plusnet don't get charged by BTw.

    Why should Plusnet pay that charge out of their own pocket?

    If it was a cancellation due to a death, then if they don't charge it, I expect they absorb the cost as a goodwill gesture due to the circumstances.

    You also only have to pay for the router (if you had one off them) and the activiation charge (if you deffered payment) if you were with them less than 12 months.

    Then I extend the question why does BT make this charge and should this not be illegal, that having to buy oneself out of a contract. PlusNet is 100% owned by BT for your info.

    We pay enough for the subscription, and we all know that we do not get the speeds we are told we would get. Do we get a rebate for that NO.

    Martin should check this practice out and highlight this scam
  • spike7451
    spike7451 Posts: 6,944 Forumite
    Every ISP charges if the customer does not move to another ISP.Plusnet may be owned by BT but they are NOT owned by BT Openreach or Wholesale,who do the work on behalf of BT Retail & the other ISP's.
  • Plusnet - Cessation Charges Explained - http://www.plus.net/support/customer_service/billing/cessation_charges.shtml
    Ofcom View "we confirm in the final guidance our view that such terms are likely to be fair where they are transparent to consumers at the point of sale and reflect only direct costs associated with ceasing service."
    BT Wholesale Costs - https://www.btwholesale.com/pages/static/service_and_support/service_support_hub/online_pricing_hub/SPPL_Page/part_3_broadband_ancillary_charges.html £24.74 ex VAT

    A cease charge will be raised under the following circumstances:
    · The Service Provider raises a cease order.
    · The Service Provider asks BT Wholesale to raise a cease order on their behalf.
    · Openreach issue an unsolicited cease because the PSTN service has been terminated.

    A cease charge will not be raised in the following circumstances:
    • The End User line has been migrated to another ADSL service provider using the published migration process.
    • The End User line has been migrated to an LLU operator (either SMPF or MPF) using the published migration process.
    • When End User service is migrated to another BT Wholesale ADSL service and / or to another Communications Provider (CP) where a MAC code is used.
    “I look like Spiderman at a funeral”~ Karl Pilkington
  • steveE2
    steveE2 Posts: 1,331 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Moonsurfer wrote: »
    Then I extend the question why does BT make this charge and should this not be illegal, that having to buy oneself out of a contract. PlusNet is 100% owned by BT for your info.

    We pay enough for the subscription, and we all know that we do not get the speeds we are told we would get. Do we get a rebate for that NO.

    Martin should check this practice out and highlight this scam

    BT make this charge as do most other ISP's as it is passed on to them from BT wholesaleas it can involve a physical disconnection at the exchange.It is not a fee to but out your contract.
    Also many other ISP's charge £30 for this with one even quoting £53.99

    Migrating to another ISP is also charged,(around £11 i believe) however the gaining ISP normally pays this in exchange for your custom.

    As for "we pay enough........."
    Probably gonna ruffle a few feathers here but no I don't think we do,broadband speeds and quality in general have increased massively over the last few years and the price has not risen in line.
    People wanting Cheap,Fast,Unlimited and reliable just ain't gonna get it.

    http://www.thinkbroadband.com/news/i/13.html
    BT have released wholesale pricing information for their Broadband products. The pricing takes place from 26.05.2000. A price of £1051.16 including VAT per annum has been announced for the "BT Highway S500 - Up to 500k / 250k" service. Or £987 per annum for "BT IPStream S500 - Up to 500k / 250k".
    Speeds are variable dependent on line quality and distance from the exchange
  • Moonsurfer wrote: »
    Then I extend the question why does BT make this charge and should this not be illegal, that having to buy oneself out of a contract. PlusNet is 100% owned by BT for your info.

    We pay enough for the subscription, and we all know that we do not get the speeds we are told we would get. Do we get a rebate for that NO.

    Martin should check this practice out and highlight this scam

    Sigh... It's not in any shape or form a scam. PlusNet makes this charge very clear when you open the account. BT charge it because it costs them money to cease BB lines - it's not rocket science.
  • This is a debate I have been having with Plusnet for the past few weeks.
    I have to disagree with the above but IT IS a scam.

    I keep explaining to Plusnet that I understand that it is a charge placed on them by BT wholesale and that I understand why they are passing it on. I disagree that the customer is adequately informed of the charges that are placed on the account.

    In my latest letter from Plusnet complaints team they themselves have admitted that the only notification that the cessation charge is levied is through their general website.

    My partner took out the contract by telephone on our behalf. When I queried if she was told about the cessation charge when she took out the contract they told me that she had not. The operator had told her that there are terms and conditions attached to the account that Plusnet would be accepting on our behalf! Interesting that they couldn't tell her about the £25 charge for leaving when she took out the contract but they did manage to mention that there was a initial start of contract charge that they would generously be waiving if she took out the contract on the spot.

    I see from a previous post that OFCOM has determined the charges as fair if they are transparent. I agree. But I fail to see how this end of contract charge can be transparent if the only mention of it is buried somewhere in their terms and conditions on their general website and they do not bother to check whether the person taking out the contract has either viewed the information or that the person has actively consented to it.

    In any case if you do view it then it is likely to be after you have made the contract. Imagine if all companies started throwing in charges for things and just saying its all there on our website for you to see.

    They should not be starting the contract without confirmation that the customer is aware of and agrees to the charges. Where you sign up for Plusnet online they will not start service until you have clicked that you have read and agreed to the charges. Why should it be any different for people who buy over the telephone?
  • deklan99 - would you be so kind as to advise which document the below came from please???....

    Ofcom View "we confirm in the final guidance our view that such terms are likely to be fair where they are transparent to consumers at the point of sale and reflect only direct costs associated with ceasing service."
  • saunby1 wrote: »
    This is a debate I have been having with Plusnet for the past few weeks.
    I have to disagree with the above but IT IS a scam.

    No, it still isn't a scam. And it isn't in hidden their T&Cs, it's stated on their price guide http://www.plus.net/info2/legal/price_guide.html. When you sign up online it is made clear, I cannot comment on when you phone as I have never done, so you may have a valid argument.

    As for Ofcom, the reason BT have to charge the cessation fee for non LLU lines, is because of Ofcoms equivalency rules.
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